AgriFI Kenya Challenge Fund awards three more agri-businesses with Ksh190 million for innovation
The AgriFI Kenya Challenge Fund has provided grant financing of Kshs 2.4 billion to 37 Kenyan agri-enterprises, with projects spanning 43 counties over a period of three years.
The European Union has today awarded three Kenyan companies grants worth more than Kshs 190 million, through the AgriFI Kenya Challenge Fund to support innovation and growth of the country’s agri-enterprise sector.
Announcing the awards to Sereni Fries, Bubayi Products Ltd and Prosoya Kenya Ltd, the European Union Ambassador to Kenya, H. E. Henriette Geiger said, “The three companies have been chosen based on their innovative ideas and their social impact. We expect this grant to go a long way in creating more jobs and integrating smallholder farmers in value chains while introducing climate smart agriculture innovative practices.”
Sereni Fries is a potato processor and producer of a range of popular potato chip snacks, Prosoya Kenya manufactures animal feeds from crops including sorghum and millet, while Bubayi Ltd processes and sells certified bean seed.
The funding was announced at an SME Networking Breakfast hosted by Self Help Africa at a Nairobi hotel. The AgriFI Kenya Challenge Fund has provided grant financing to 37 agri-enterprises which have created close to 4,000 new jobs, and reached 100,000 smallholder farmers and pastoralists in twelve different value chains across Kenya including dairy, horticulture, aquaculture, cotton, pyrethrum, coffee, sorghum, nuts, gums, potatoes, apiculture, cereals and pulses. The Challenge Fund has been administered through five calls that have now been all now contracted. The three companies awarded today marks the close of the calls.
The funds have leveraged Kshs 4.4 billion in private sector investment from commercial banks in Kenya. international financing institutions and companies own resources. In addition to the financial support, the awardees have benefitted from technical assistance on enterprise development, social inclusion and market linkages.
Managed by Self Help Africa and Imani Development Limited, the AgriFI Kenya Challenge Fund is an initiative of the European Union and co-funded by SlovakAid to support productive and market-integrated smallholder agriculture through the provision of financial support. The fund aims to contribute to improvement in the capacity of smallholder farmers/pastoralists to practice environmentally sustainable and climate-smart agriculture as a business in inclusive value chains.
Speaking at the event held at a Nairobi hotel Evelyn Gandani, Self Help Africa’s Country Director underscored the need for development partners to support to the agriculture sector. “The private sector is the main driver and creator of close to 40% of jobs in the agriculture sector by creating opportunities for smallholder farmers and that is why we are implementing programmes like AgriFI to incentivize private sector investments through bankable businesses which in turn contribute to the country’s GDP,” she noted.
Through access to agricultural inputs, market linkages, improved seed varieties, climate-smart practices and digitized agricultural sector information, small-scale farmers, have progressively diversified into competitive value chains thus improving their household incomes and livelihoods.
About the AgriFI Kenya Challenge Fund
The AgriFI Kenya Challenge Fund is a European Union initiative to support productive and market-integrated smallholder agriculture through the provision of financial support worth EUR 18,000,000 to agri–enterprises.
AgriFI aims to improve the capacity of smallholder farmers/pastoralists to practice environmentally sustainable and climate-smart agriculture as a business in inclusive value chains.
Fund is funded by the European Union and co-funded by SlovakAid. The European
Investment Bank (EIB) – under the AgriFI Kenya programme – is providing long
term local currency financing to Equity Bank (Kenya) Limited for on-lending to
eligible food and agriculture sector projects. Match funding is also available
for successful applicants.
Self Help Africa and Imani Development Limited are the Challenge Fund Managers.
The Challenge Fund is part of the wider AgriFI programme funded under the 11th European Development Fund (EDF) to unlock, accelerate and leverage investments within value chains in Kenya.
About Self Help Africa
Self Help Africa (SHA) is a leading international development organisation that works with smallholder farmers, farmer associations, cooperatives, and small and medium-size enterprises in the agribusiness sector. We seek to make small-scale farming more productive and more profitable, and help farming households to grow and sell more agricultural commodities, improve diets, diversify incomes and make their livelihoods more sustainable and resilient to external shocks. We also implement projects that improve access of rural communities to better water and sanitation services. In 2021, Self Help Africa merged with United Purpose to extend the reach of our programmes to 17 countries worldwide, 15 of which are in sub-Saharan Africa. We also work to raise awareness of smallholder farmer issues at policy and institutional level.
About The European Union:
The European Union is a political and economic union of 27 Member States. Together, the European Union and its Member States are Kenya’s biggest development partner. The European Union supports good governance, rule of law, democracy and human rights in Kenya. The European Union is a key multilateral, development and trade partner of Kenya, working to improve green growth and the investment climate in Kenya to create decent jobs.